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YEAR 2013 ONE MARK
MCQ 9.1 Customer arrive at a ticket counter at a rate of 50 per hr and tickets are issued
in the order of their arrival. The average time taken for issuing a ticket is 1 . min
Assuming that customer arrivals from a Poisson process and service times and
exponentially distributed, the average waiting time is queue in min is
(A) 3 (B) 4
(C) 5 (D) 6
MCQ 9.2 Let X be a normal random variable with mean 1 and variance 4. The probabil
ity P X 0 < " , is
(A) . 0 5 (B) greater than zero and less the . 0 5
(C) greater than . 0 5 and less than 1.0 (D) . 1 0
MCQ 9.3 In simple exponential smoothing forecasting, to give higher weightage to recent
demand information, the smoothing constant must be close to
(A) 1 (B) zero
(C) 0.5 (D) 1.0
YEAR 2013 TWO MARKS
MCQ 9.4 A linear programming problem is shown below.
Maximize x y 3 7 +
Subject to x y 3 7 10 # +
x y 4 6 8 # +
, x y 0 $
It has
(A) an unbounded objective function (B) exactly one optimal solution.
(C) exactly two optimal solutions. (D) infinitely many optimal solutions
YEAR 2012 ONE MARK
MCQ 9.5 Which one of the following is NOT a decision taken during the aggregate pro
duction planning stage ?
(A) Scheduling of machines
(B) Amount of labour to be committed
(C) Rate at which production should happen
(D) Inventory to be carried forward
YEAR 2012 TWO MARKS
Common Data For Q.6 and Q.7
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. One unit of product P2 requires 2 kg of resources R1 and 2 kg of resources R2
. The profits per unit by selling product P1 and P2 are . 2000 Rs and . 3000 Rs re
spectively. The manufacturer has 90 kg of resources R1 and 100 kg of resources
R2.
MCQ 9.10 The unit worth of resources R2, i.e., dual price of resources R2 in Rs. per kg is
(A) 0 (B) 1350
(C) 1500 (D) 2000
MCQ 9.11 The manufacturer can make a maximum profit of Rs.
(A) 60000 (B) 135000
(C) 150000 (D) 200000
YEAR 2010 ONE MARK
MCQ 9.12 The demand and forecast for February are 12000 and 10275, respectively. Using
single exponential smoothening method (smoothening coefficient 0.25 = ), fore
cast for the month of March is
(A) 431 (B) 9587
(C) 10706 (D) 11000
MCQ 9.13 Littles law is a relationship between
(A) stock level and lead time in an inventory system
(B) waiting time and length of the queue in a queuing system
(C) number of machines and job due dates in a scheduling problem
(D) uncertainty in the activity time and project completion time
MCQ 9.14 Vehicle manufacturing assembly line is an example of
(A) product layout (B) process layout
(C) manual layout (D) fixed layout
MCQ 9.15 Simplex method of solving linear programming problem uses
(A) all the points in the feasible region
(B) only the corner points of the feasible region
(C) intermediate points within the infeasible region
(D) only the interior points in the feasible region
YEAR 2010 TWO MARKS
MCQ 9.16 Annual demand for window frames is 10000. Each frame cost . 200 Rs and or
dering cost is . 300 Rs per order. Inventory holding cost is . 40 Rs per frame per
year. The supplier is willing of offer 2% discount if the order quantity is 1000 or
more, and 4% if order quantity is 2000 or more. If the total cost is to be mini
mized, the retailer should
(A) order 200 frames every time
(B) accept 2% discount
(C) accept 4% discount
For a particular project, eight activities are to be carried out. Their relation
ships with other activities and expected durations are mentioned in the table
below.
Activity Predecessors Durations (days)
a  3
b a 4
c a 5
d a 4
e b 2
f d 9
g c, e 6
h f , g 2
MCQ 9.6 The critical path for the project is
(A) a  b  e  g  h (B) a  c  g  h
(C) a  d  f  h (D) a  b  c  f  h
MCQ 9.7 If the duration of activity f alone is changed from 9 to 10 days, then the
(A) critical path remains the same and the total duration to complete the pro
ject changes to 19 days.
(B) critical path and the total duration to complete the project remains the
same.
(C) critical path changes but the total duration to complete the project remains
the same.
(D) critical path changes and the total duration to complete the project changes
to 17 days.
YEAR 2011 ONE MARK
MCQ 9.8 Cars arrive at a service station according to Poissons distribution with a mean
rate of 5 per hour. The service time per car is exponential with a mean of 10
minutes. At steady state, the average waiting time in the queue is
(A) 10 minutes (B) 20 minutes
(C) 25 minutes (D) 50 minutes
MCQ 9.9 The word kanban is most appropriately associated with
(A) economic order quantity
(B) justintime production
(C) capacity planning
(D) product design
YEAR 2011 TWO MARKS
Common Data For Q.10 and Q.11
One unit of product P1 requires 3 kg of resources R1 and 1 kg of resources R2
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(A) simple average method
(B) moving average method
(C) weighted moving average method
(D) exponential smoothening method
YEAR 2009 TWO MARKS
MCQ 9.22 A company uses 2555 units of an item annually. Delivery lead time is 8 days.
The reorder point (in number of units) to achieve optimum inventory is
(A) 7 (B) 8
(C) 56 (D) 60
MCQ 9.23 Consider the following Linear Programming Problem (LPP):
Maximize Z = 3 2 x x 1 2 +
Subject to x1 4 #
x2 6 #
3 2 x x 1 2 + 18 #
x1 0, 0 x2 $ $
(A) The LPP has a unique optimal solution
(B) The LPP is infeasible.
(C) The LPP is unbounded.
(D) The LPP has multiple optimal solutions.
MCQ 9.24 Six jobs arrived in a sequence as given below:
Jobs Processing Time (days)
I 4
II 9
III 5
IV 10
V 6
VI 8
Average flow time (in days) for the above jobs using Shortest Processing time
rule is
(A) 20.83 (B) 23.16
(C) 125.00 (D) 139.00
Common Data For Q.25 and Q.26
Consider the following PERT network:
(D) order Economic Order Quantity
MCQ 9.17 The project activities, precedence relationships and durations are described in
the table. The critical path of the project is
Activity Precedence Duration (in days)
P  3
Q  4
R P 5
S Q 5
T , R S 7
U , R S 5
V T 2
W U 10
(A) PRTV (B) QSTV
(C) PRUW (D) QSUW
Common Data For Q.18 and Q.19
Four jobs are to be processed on a machine as per data listed in the table.
Job Processing time (in days) Due date
1 4 6
2 7 9
3 2 19
4 8 17
MCQ 9.18 If the Earliest Due Date (EDD) rule is used to sequence the jobs, the number of
jobs delayed is
(A) 1 (B) 2
(C) 3 (D) 4
MCQ 9.19 Using the Shortest Processing Time (SPT) rule, total tardiness is
(A) 0 (B) 2
(C) 6 (D) 8
YEAR 2009 ONE MARK
MCQ 9.20 The expected time ( ) te of a PERT activity in terms of optimistic time t0, pes
simistic time ( ) tp and most likely time ( ) tl is given by
(A) t
t t t
6
4
e
o l p
=
+ +
(B) t
t t t
6
4
e
o p l
=
+ +
(C) t
t t t
3
4
e
o l p
=
+ +
(D) t
t t t
3
4
e
o p l
=
+ +
MCQ 9.21 Which of the following forecasting methods takes a fraction of forecast error
into account for the next period forecast ?
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YEAR 2008 TWO MARKS
MCQ 9.29 For the standard transportation linear programme with m source and n des
tinations and total supply equaling total demand, an optimal solution (lowest
cost) with the smallest number of nonzero xij values (amounts from source i to
destination j ) is desired. The best upper bound for this number is
(A) mn (B) 2( ) m n +
(C) m n + (D) 1 m n +
MCQ 9.30 A moving average system is used for forecasting weekly demand ( ) F t 1 and ( ) F t 2
are sequences of forecasts with parameters m1 and m2, respectively, where m1
and ( ) m m m > 2 1 2 denote the numbers of weeks over which the moving averages
are taken. The actual demand shows a step increase from d1 to d2 at a certain
time. Subsequently,
(A) neither ( ) F t 1 nor ( ) F t 2 will catch up with the value d2
(B) both sequences ( ) F t 1 and ( ) F t 2 will reach d2 in the same period
(C) ( ) F t 1 will attain the value d2 before ( ) F t 2
(D) ( ) F t 2 will attain the value d2 before ( ) F t 1
MCQ 9.31 For the network below, the objective is to find the length of the shortest path
from node to node P G.
Let dij be the length of directed arc from node i to node j .
Let Sj be the length of the shortest path from P to node j . Which of the fol
lowing equations can be used to find SG ?
(A) { , } Min S S S G Q R = (B) { , } Min S S d S d G Q QG R RG =
(C) { , } Min S S d S d G Q QG R RG = + + (D) { , } Min S d d G QG RG =
MCQ 9.32 The product structure of an assembly P is shown in the figure.
Estimated demand for end product P is as follows
Week 1 2 3 4 5 6
Demand 1000 1000 1000 1000 1200 1200
ignore lead times for assembly and subassembly. Production capacity (per
week) for component R is the bottleneck operation. Starting with zero invento
ry, the smallest capacity that will ensure a feasible production plan up to week
6 is
The optimistic time, most likely time and pessimistic time of all the activities
are given in the table below:
Activity Optimistic time
(days)
Most likely time
(days)
Pessimistic time
(days)
1  2 1 2 3
1  3 5 6 7
1  4 3 5 7
2  5 5 7 9
3  5 2 4 6
5  6 4 5 6
4  7 4 6 8
6  7 2 3 4
MCQ 9.25 The critical path duration of the network (in days) is
(A) 11 (B) 14
(C) 17 (D) 18
MCQ 9.26 The standard deviation of the critical path is
(A) 0.33 (B) 0.55
(C) 0.77 (D) 1.66
YEAR 2008 ONE MARK
MCQ 9.27 In an / / M M 1 queuing system, the number of arrivals in an interval of length T
is a Poisson random variable (i.e. the probability of there being arrivals in an
interval of length T is
!
( )
n
e T
T n
l
l 
). The probability density function ( ) f t of the
interarrival time is
(A) e
t 2
2
l
l 
^ h (B)
e
t
2
2
l
l 
(C) e
t
l
l 
(D)
e
t
l
l 
MCQ 9.28 A set of 5 jobs is to be processed on a single machine. The processing time (in
days) is given in the table below. The holding cost for each job is Rs. K per day.
Job Processing time
P 5
Q 2
R 3
S 2
T 1
A schedule that minimizes the total inventory cost is
(A) TSQRP (B) PRSQT
(C) TRSQP (D) PQRST
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YEAR 2007 TWO MARKS
MCQ 9.35 Capacities of production of an item over 3 consecutive months in regular time
are 100, 100 and 80 and in overtime are 20, 20 and 40. The demands over those
3 months are 90, 130 and 110. The cost of production in regular time and over
time are respectively . 20 Rs per item and . 24 Rs per item. Inventory carrying
cost is . 2 Rs per item per month. The levels of starting and final inventory are
nil. Backorder is not permitted. For minimum cost of plan, the level of planned
production in overtime in the third month is
(A) 40 (B) 30
(C) 20 (D) 0
MCQ 9.36 The maximum level of inventory of an item is 100 and it is achieved with infi
nite replenishment rate. The inventory becomes zero over one and half month
due to consumption at a uniform rate. This cycle continues throughout the
year. Ordering cost is . 100 Rs per order and inventory carrying cost is . 10 Rs per
item per month. Annual cost (in Rs.) of the plan, neglecting material cost, is
(A) 800 (B) 2800
(C) 4800 (D) 6800
MCQ 9.37 In a machine shop, pins of mm 15 diameter are produced at a rate of 1000 per
month and the same is consumed at a rate of 500 per month. The produc
tion and consumption continue simultaneously till the maximum inventory is
reached. Then inventory is allowed to reduced to zero due to consumption . The
lot size of production is 1000. If backlog is not allowed, the maximum inventory
level is
(A) 400 (B) 500
(C) 600 (D) 700
MCQ 9.38 The net requirements of an item over 5 consecutive weeks are 500152020.
The inventory carrying cost and ordering cost are . 1 Rs per item per week and
. 100 Rs per order respectively. Starting inventory is zero. Use Least Unit Cost
Technique for developing the plan. The cost of the plan (in Rs.) is
(A) 200 (B) 250
(C) 225 (D) 260
YEAR 2006 ONE MARK
MCQ 9.39 The number of customers arriving at a railway reservation counter is Poisson
distributed with an arrival rate of eight customers per hour. The reservation
clerk at this counter takes six minutes per customer on an average with an
exponentially distributed service time. The average number of the customers in
the queue will be
(A) 3 (B) 3.2
(C) 4 (D) 4.2
MCQ 9.40 In an MRP system, component demand is
(A) forecasted
(B) established by the master production schedule
(C) calculated by the MRP system from the master production schedule
(A) 1000 (B) 1200
(C) 2200 (D) 2400
Common Data For Q.33 and Q.34
Consider the Linear Programme (LP)
Max 4 6 x y +
Subject to 3 2 x y + 6 #
2 3 x y + 6 #
, x y 0 $
MCQ 9.33 After introducing slack variables s and t , the initial basic feasible solution is
represented by the table below (basic variables are 6 s = and 6 t = , and the
objective function value is 0)
4  6  0 0 0
s 3 2 1 0 6
t 2 3 0 1 6
x y s t RHS
After some simplex iterations, the following table is obtained
0 0 0 2 12
s 5/3 0 1 / 1 3  2
y 2/3 1 0 1/3 2
x y s t RHS
From this, one can conclude that
(A) the LP has a unique optimal solution
(B) the LP has an optimal solution that is not unique
(C) the LP is infeasible
(D) the LP is unbounded
MCQ 9.34 The dual for the LP in Q. 29 is
(A) 6 6 Min u v + (B) 6 6 Max u v +
subject to subject to
3 2 4 u v $ + 3 2 4 u v # +
2 3 6 u v $ + 2 3 6 u v # +
, 0 u v $ , 0 u v $
(C) 4 6 Max u v + (D) 4 6 Min u v +
subject to subject to
3 2 6 u v $ + 3 2 6 u v # +
2 3 6 u v $ + 2 3 6 u v # +
, 0 u v $ , 0 u v $
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Probability 0.10 0.35 0.35 0.20
The stockist pays . 70 Rs for each item and he sells each at . 90 Rs . If the stock is
left unsold in any month, he can sell the item at . 50 Rs each. There is no pen
alty for unfulfilled demand. To maximize the expected profit, the optimal stock
level is
(A) 5 units (B) 4 units
(C) 3 units (D) 2 units
MCQ 9.45 The table gives details of an assembly line.
Work station I II III IV V VI
Total task time at the workstation
(in minutes)
7 9 7 10 9 6
What is the line efficiency of the assembly line ?
(A) 70% (B) 75%
(C) 80% (D) 85%
MCQ 9.46 The expected completion time of the project is
(A) 238 days (B) 224 days
(C) 171 days (D) 155 days
MCQ 9.47 The standard deviation of the critical path of the project is
(A) 151 days (B) 155 days
(C) 200 days (D) 238 days
YEAR 2005 ONE MARK
MCQ 9.48 An assembly activity is represented on an Operation Process Chart by the sym
bol
(A) 4 (B) A
(C) D (D) O
MCQ 9.49 The sales of a product during the last four years were 860, 880, 870 and 890
units. The forecast for the fourth year was 876 units. If the forecast for the fifth
year, using simple exponential smoothing, is equal to the forecast using a three
period moving average, the value of the exponential smoothing constant a is
(A)
7
1
(B)
5
1
(C)
7
2
(D)
5
2
MCQ 9.50 Consider a single server queuing model with Poisson arrivals ( ) 4/hour l = and
exponential service ( 4/ ) hour = . The number in the system is restricted to a
maximum of 10. The probability that a person who comes in leaves without
joining the queue is
(A)
11
1
(B)
10
1
(C)
9
1
(D)
2
1
(D) ignored
YEAR 2006 TWO MARKS
MCQ 9.41 An manufacturing shop processes sheet metal jobs, wherein each job must pass
through two machines (M1 and M2, in that order). The processing time (in
hours) for these jobs is
Machine
Jobs
P Q R S T U
M1 15 32 8 27 11 16
M2 6 19 13 20 14 7
The optimal makespan (inhours) of the shop is
(A) 120 (B) 115
(C) 109 (D) 79
MCQ 9.42 Consider the following data for an item.
Annual demand : 2500 units per year, Ordering cost : . 100 Rs per order, Inven
tory holding rate : 25% of unit price
Price quoted by a supplier
Order quantity (units) Unit price (Rs.)
500 < 10
500 $ 9
The optimum order quantity (in units) is
(A) 447 (B) 471
(C) 500 (D) 600 $
MCQ 9.43 A firm is required to procure three items (P, Q, and R). The prices quoted for
these items (in Rs.) by suppliers S1, S2 and S3 are given in table. The man
agement policy requires that each item has to be supplied by only one supplier
and one supplier supply only one item. The minimum total cost (in Rs.) of
procurement to the firm is
Item Suppliers
S1 S2 S3
P 110 120 130
Q 115 140 140
R 125 145 165
(A) 350 (B) 360
(C) 385 (D) 395
MCQ 9.44 A stockist wishes to optimize the number of perishable items he needs to stock
in any month in his store. The demand distribution for this perishable item is
Demand (in units) 2 3 4 5
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Consider a linear programming problem with two variables and two constraints.
The objective function is : Maximize X X 1 2 + . The corner points of the feasible
region are (0, 0), (0, 2), (2, 0) and (4/3, 4/3)
MCQ 9.56 If an additional constraint 5 X X 1 2 # + is added, the optimal solution is
(A) ,
3
5
3
5
b l
(B) ,
3
4
3
4
b l
(C) ,
2
5
2
5
b l
(D) (5, 0)
MCQ 9.57 Let Y1 and Y2 be the decision variables of the dual and v1 and v2 be the slack
variables of the dual of the given linear programming problem. The optimum
dual variables are
(A) Y1 and Y2 (B) Y1 and v1
(C) Y1 and v2 (D) v1 and v2
YEAR 2004 ONE MARK
MCQ 9.58 In PERT analysis a critical activity has
(A) maximum Float (B) zero Float
(C) maximum Cost (D) minimum Cost
MCQ 9.59 For a product, the forecast and the actual sales for December 2002 were 25 and
20 respectively. If the exponential smoothing constant ( ) a is taken as 0.2, then
forecast sales for January 2003 would be
(A) 21 (B) 23
(C) 24 (D) 27
MCQ 9.60 There are two products P and Q with the following characteristics
Product Demand (Units) Order cost
(Rs/order)
Holding Cost
(Rs./ unit/ year)
P 100 50 4
Q 400 50 1
The economic order quantity (EOQ) of products P and Q will be in the ratio
(A) 1 : 1 (B) 1 : 2
(C) 1 : 4 (D) 1 : 8
YEAR 2004 TWO MARKS
MCQ 9.61 A standard machine tool and an automatic machine tool are being compared
for the production of a component. Following data refers to the two machines.
Standard
Machine Tool
Automatic
Machine Tool
Setup time 30 min 2 hours
Machining time per piece 22 min 5 min
Machine rate Rs. 200 per hour Rs. 800 per hour
The break even production batch size above which the automatic machine tool
YEAR 2005 TWO MARKS
MCQ 9.51 A component can be produced by any of the four processes I, II, III and IV.
Process I has a fixed cost of . 20 Rs and variable cost of . 3 Rs per piece. Process
II has a fixed cost . 50 Rs and variable cost of . 1 Rs per piece. Process III has a
fixed cost of . 40 Rs and variable cost of . 2 Rs per piece. Process IV has a fixed
cost of . 10 Rs and variable cost of . 4 Rs per piece. If the company wishes to pro
duce 100 pieces of the component, form economic point of view it should choose
(A) Process I (B) Process II
(C) Process III (D) Process IV
MCQ 9.52 A welding operation is timestudied during which an operator was pacerated as
120%. The operator took, on an average, 8 minutes for producing the weldjoint.
If a total of 10% allowances are allowed for this operation. The expected standard
production rate of the weldjoint (in units per 8 hour day) is
(A) 45 (B) 50
(C) 55 (D) 60
MCQ 9.53 The distribution of lead time demand for an item is as follows:
Lead time demand Probability
80 0.20
100 0.25
120 0.30
140 0.25
The reorder level is 1.25 times the expected value of the lead time demand. The
service level is
(A) 25% (B) 50%
(C) 75% (D) 100%
MCQ 9.54 A project has six activities ( to A F) with respective activity duration 7, 5, 6, 6,
8, 4 days. The network has three paths AB, CD and EF. All the activities
can be crashed with the same crash cost per day. The number of activities that
need to be crashed to reduce the project duration by 1 day is
(A) 1 (B) 2
(C) 3 (D) 6
MCQ 9.55 A company has two factories S1 , S2, and two warehouses 1 D , D2. The sup
plies from S1 and S2 are 50 and 40 units respectively. Warehouse 1 D requires
a minimum of 20 units and a maximum of 40 units. Warehouse D2 requires a
minimum of 20 units and, over and above, it can take as much as can be sup
plied. A balanced transportation problem is to be formulated for the above
situation. The number of supply points, the number of demand points, and the
total supply (or total demand) in the balanced transportation problem respec
tively are
(A) 2, 4, 90 (B) 2, 4, 110
(C) 3, 4, 90 (D) 3, 4, 110
Common Data For Q.56 and Q.57
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YEAR 2003 ONE MARK
MCQ 9.67 The symbol used for Transport in work study is
(A) & (B) T
(C) > (D) 4
YEAR 2003 TWO MARKS
MCQ 9.68 Two machines of the same production rate are available for use. On machine 1,
the fixed cost is . Rs 100 and the variable cost is . Rs 2 per piece produced. The
corresponding numbers for the machine 2 are . Rs 200 and . 1 Re respectively. For
certain strategic reasons both the machines are to be used concurrently. The
sales price of the first 800 units is . . Rs 3 50 per unit and subsequently it is only
. . Rs 3 00. The breakeven production rate for each machine is
(A) 75 (B) 100
(C) 150 (D) 600
MCQ 9.69 A residential school stipulates the study hours as 8.00 pm to 10.30 pm. Warden
makes random checks on a certain student 11 occasions a day during the study
hours over a period of 10 days and observes that he is studying on 71 occasions.
Using 95% confidence interval, the estimated minimum hours of his study dur
ing that 10 day period is
(A) 8.5 hours (B) 13.9 hours
(C) 16.1 hours (D) 18.4 hours
MCQ 9.70 The sale of cycles in a shop in four consecutive months are given as 70, 68, 82,
95. Exponentially smoothing average method with a smoothing factor of 0.4 is
used in forecasting. The expected number of sales in the next month is
(A) 59 (B) 72
(C) 86 (D) 136
MCQ 9.71 Market demand for springs is 8,00,000 per annum. A company purchases these
springs in lots and sells them. The cost of making a purchase order is . 1200 Rs .
The cost of storage of springs is . 120 Rs per stored piece per annum. The eco
nomic order quantity is
(A) 400
(B) 2,828
(C) 4,000
(D) 8,000
MCQ 9.72 A manufacturer produces two types of products, 1 and 2, at production levels
of x1 and x2 respectively. The profit is given is 2 5 x x 1 2 + . The production con
straints are
3 x x 1 2 + 40 #
3x x 1 2 + 24 #
x x 1 2 + 10 #
0 x > 1 , 0 x > 2
The maximum profit which can meet the constraints is
(A) 29 (B) 38
(C) 44 (D) 75
will be economical to use, will be
(A) 4 (B) 5
(C) 24 (D) 225
MCQ 9.62 A soldering operation was worksampled over two days (16 hours) during which
an employee soldered 108 joints. Actual working time was 90% of the total time
and the performance rating was estimated to be 120 per cent. If the contract
provides allowance of 20 percent of the time available, the standard time for the
operation would be
(A) 8 min (B) 8.9 min
(C) 10 min (D) 12 min
MCQ 9.63 An electronic equipment manufacturer has decided to add a component subas
sembly operation that can produce 80 units during a regular 8hours shift. This
operation consist of three activities as below
Activity Standard time (min)
M. Mechanical assembly 12
E. Electric wiring 16
T. Test 3
For line balancing the number of work stations required for the activities M, E
and T would respectively be
(A) 2, 3, 1 (B) 3, 2, 1
(C) 2, 4, 2 (D) 2, 1, 3
MCQ 9.64 A maintenance service facility has Poisson arrival rates, negative exponential
service time and operates on a first come first served queue discipline. Break
downs occur on an average of 3 per day with a range of zero to eight. The main
tenance crew can service an average of 6 machines per day with a range of zero
to seven. The mean waiting time for an item to be serviced would be
(A)
6
1
day (B)
3
1
day
(C) 1 day (D) 3 day
MCQ 9.65 A company has an annual demand of 1000 units, ordering cost of . 100 Rs / order
and carrying cost of . 100 Rs / unit/year. If the stockout cost are estimated to
be nearly . 400 Rs each time the company runs outofstock, then safety stock
justified by the carrying cost will be
(A) 4 (B) 20
(C) 40 (D) 100
MCQ 9.66 A company produces two types of toys : P and Q. Production time of Q is
twice that of P and the company has a maximum of 2000 time units per day.
The supply of raw material is just sufficient to produce 1500 toys (of any type)
per day. Toy type Q requires an electric switch which is available @ 600 pieces
per day only. The company makes a profit of . 3 Rs and . 5 Rs on type P and Q
respectively. For maximization of profits, the daily production quantities of P
and Q toys should respectively be
(A) 1000, 500 (B) 500, 1000
(C) 800, 600 (D) 1000, 1000
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mands at the four destinations are 20, 30, 10 and 50 unit. In solving this trans
portation problem
(A) a dummy source of capacity 40 unit is needed
(B) a dummy destination of capacity 40 unit is needed
(C) no solution exists as the problem is infeasible
(D) no solution exists as the problem is degenerate
MCQ 9.80 A project consists of three parallel paths with mean durations and variances of
( , ) 10 4 , ( , ) 12 4 and ( , ) 12 9 respectively. According to the standard PERT as
sumptions, the distribution of the project duration is
(A) beta with mean 10 and standard deviation 2
(B) beta with mean 12 and standard deviation 2
(C) normal with mean 10 and standard deviation 3
(D) normal with mean 12 and standard deviation 3
YEAR 2001 ONE MARK
MCQ 9.81 Production flow analysis (PFA) is a method of identifying part families that
uses data from
(A) engineering drawings (B) production schedule
(C) bill of materials (D) route sheets
MCQ 9.82 When using a simple moving average to forecast demand, one would
(A) give equal weight to all demand data
(B) assign more weight to the recent demand data
(C) include new demand data in the average without discarding the earlier data
(D) include new demand data in the average after discarding some of the earlier
demand data
YEAR 2001 TWO MARKS
MCQ 9.83 Fifty observations of a production operation revealed a mean cycle time of
min 10 . The worker was evaluated to be performing at % 90 efficiency. Assuming
the allowances to be % 10 of the normal time, the standard time (in second) for
the job is
(A) 0.198 (B) 7.3
(C) 9.0 (D) 9.9
********
MCQ 9.73 A project consists of activities A to M shown in the net in the following figure
with the duration of the activities marked in days
The project can be completed
(A) between 18, 19 days (B) between 20, 22 days
(C) between 24, 26 days (D) between 60, 70 days
MCQ 9.74 The principles of motion economy are mostly used while conducting
(A) a method study on an operation
(B) a time study on an operation
(C) a financial appraisal of an operation
(D) a feasibility study of the proposed manufacturing plant
YEAR 2002 ONE MARK
MCQ 9.75 The standard time of an operation while conducting a time study is
(A) mean observed time + allowances
(B) normal time + allowances
(C) mean observed time # rating factor + allowances
(D) normal time # rating factor + allowances
MCQ 9.76 In carrying out a work sampling study in a machine shop, it was found that a
particular lathe was down for % 20 of the time. What would be the % 95 confi
dence interval of this estimate, if 100 observations were made ?
(A) (0.16, . ) 0 24 (B) ( . , . ) 0 12 0 28
(C) ( . , . ) 0 08 0 32 (D) None of these
MCQ 9.77 An item can be purchased for Rs. 100. The ordering cost is Rs. 200 and the in
ventory carrying cost is % 10 of the item cost per annum. If the annual demand
is 4000 unit, the economic order quantity (in unit) is
(A) 50 (B) 100
(C) 200 (D) 400
YEAR 2002 TWO MARKS
MCQ 9.78 Arrivals at a telephone booth are considered to be Poisson, with an average
time of 10 minutes between successive arrivals. The length of a phone call is
distributed exponentially with mean 3 n mi utes. The probability that an arrival
does not have to wait before service is
(A) 0.3 (B) 0.5
(C) 0.7 (D) 0.9
MCQ 9.79 The supplies at three sources are 50, 40 and 60 unit respectively whilst the de
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The solution of the given problem must lie in the shaded area. One of the points
, O P and Q of shaded area must give the optimum solution of problem. So
At , P 0
4
3 ^ h, Z . 3 0 7
3
4
3
28
9 33 # # = + = =
and at , Q 2 0 ^ h, Z 3 2 7 0 6 # # = + =
Hence, there is only a single optimal solution of the problem which is at point
, P 0
4
3 ^ h.
SOL 9.5 Option (A) is correct.
Costs relevant to aggregate production planning is as given below.
(i) Basic production cost : Material costs, direct labour costs, and overhead
cost.
(ii) Costs associated with changes in production rate : Costs involving in hiring,
training and laying off personnel, as well as, overtime compensation.
(iii) Inventory related costs.
Hence, from above option (A) is not related to these costs. Therefore option (A)
is not a decision taken during the APP.
SOL 9.6 Option (C) is correct.
For path Duration
a  b  e  g  h 3 4 2 6 2 17 days = + + + + =
a  c  g  h 3 5 6 2 16 days = + + + =
a  d  f  h 3 4 9 2 18 days = + + + =
The critical path is one that takes longest path.
Hence, path a  d  f  h 18 days = is critical path
SOLUTION
SOL 9.1 Option (C) is correct.
Average waiting time of a customer (in a queue) is given by
E w ^ h
=
^ h
Where l 50 = customers per hour or . 0 834 customer/min
1 = per min
Therefore E w ^ h
.
0.8
1 1 0 834
34
#
=
^ h
5 min =
SOL 9.2 Option (B) is correct.
The normal random variable is
X , N =
^ h
Where 1 = and 2 s =
Here P X 0 < ^ h P
x
2
0 1
<
=
c m
. P z 0 5 < = ^ h
Where z = standard Normal Variable
. . 0 5 0 5 f = ^ h
Where value of z f^ h is always between . 0 0 to . 0 4999
Hence the probability
P X 0 < " , = greater than zero and less than . 0 5.
SOL 9.3 Option (D) is correct.
Higher weightage given to recent demand, therefore F D t t =
Ft ( ) F D F t t t 1 1 a = +
or ( ) F D 1 t t 1 a = +
Thus from the given condition
( ) F 1 t 1 a   0 =
or a 1 =
The values of smoothing constant a ^ h lie between 0 and 1. A low value of a
gives more weightage to the past series and less weightage to the recent demand
information. Hence, in simple exponential smoothing forecasting, higher value of
a, i.e. 1, gives higher weightage to recent demand information and less weightage
to the past series.
SOL 9.4 Option (B) is correct.
We have
Maximize x y 3 7 +
Subject to x y 3 7 10 # +
x y 4 6 8 # +
, x y 0 $
From these equation, we have
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0 S2 10 2  0 1  1
Zj 4500 3000 1500 0 " unit worth of R2
Z C j j  2500 0 1500 0
SOL 9.11 Option (B) is correct.
Since all 0 Z C j j $  , an optimal basic feasible solution has been attained. Thus,
the optimum solution to the given LPP is
MaxZ 2000 0 3000 45 # # = + .135000 Rs = with P 0 1 = and P 45 2 =
SOL 9.12 Option (C) is correct.
Given, forecast for February Ft 1  10275 =
Demand for February Dt 1  12000 =
Smoothing coefficient a . 0 25 =
Which is The forecast for the next period is given by,
Ft ( ) ( ) D F 1 t t 1 1 # a a = +
. ( ) ( . ) ( ) 0 25 12000 1 0 25 10275 # # = +
. 10706 25 = 10706 
Hence, forecast for the month of march is 10706.
SOL 9.13 Option (B) is correct.
Littles law is a relationship between average waiting time and average length of
the queue in a queuing system.
The little law establish a relation between Queue length ( ) Lq , Queue waiting time
( ) Wq and the Mean arrival rate l.
So, Lq Wq l =
SOL 9.14 Option (A) is correct.
Vehicle manufacturing assembly line is an example of product layout.
A productoriented layout is appropriate for producing one standardized product,
usually in large volume. Each unit of output requires the same sequence of
operations from beginning to end.
SOL 9.15 Option (D) is correct.
Simplex method provides an algorithm which consists in moving from one point
of the region of feasible solutions to another in such a manner that the value of
the objective function at the succeeding point is less (or more, as the case may
be) than at the preceding point. This procedure of jumping from one point to
another is then repeated. Since the number of points is finite, the method leads
to an optimal point in a finite number of steps.
Therefore simplex method only uses the interior points in the feasible region.
SOL 9.16 Option (C) is correct.
Given : D 10000 =
Ordering cost Co . Rs 300 = per order
Holding cost Ch . Rs 40 = per frame per year
Unit cost, Cu . Rs 200 =
EOQ
C
C D 2
40
2 300 10000
h
o # #
= = 387 units 
Total cost = Purchase cost + holding cost + ordering cost
SOL 9.7 Option (A) is correct.
From previous question
For critical path
ad f h 18 days = , the duration of activity f alone is changed from 9 to 10 days,
then
a  d  f  h 3 4 10 2 19 days = + + + =
Hence critical path remains same and the total duration to complete the project
changes to 19 days.
SOL 9.8 Option (D) is correct.
Given : l 5 per hour = , 60 per hour
10
1
# = 6 per hour =
Average waiting time of an arrival
Wq
( )
( ) 6 6 5
5
=
hours
6
5
= min 50 =
SOL 9.9 Option (B) is correct.
Kanban Literally, a Visual record; a method of controlling materials flow
through a Justintime manufacturing system by using cards to authorize a work
station to transfer or produce materials.
SOL 9.10 Option (A) is correct.
Since, in Zj Row of final (second) obtimum table the value of slack variable S2
showns the unit worth or dual price of Resource R2 and the value of S2 in given
below table is zero. Hence the dual Price of Resource R2 is zero.
Max Z P P 2000 3000 1 2 = +
S.T. P P 3 2 1 2 + 90 # R1 " Resource
P P 2 1 2 + 100 # R2 " Resource
P1, P2 0 $
Solution : Z . . P P S S 2000 3000 0 0 1 2 1 2 = + + +
S.T. P P S 3 2 1 2 1 + + 90 =
P P S 2 1 2 2 + + 100 =
P 0 1 $ , P 0 2 $ , S 0 1 $ , S 0 2 $
First table :
Cj 2000 3000 0 0
CB SB PB P1 P2 S1 S2
0 S1 90 3 2 " 1 0
0 S2 100 1 2 0 1
Zj 0 0 0 0
Z C j j  2000  3000 

0 0
Second Table :
Cj 2000 3000 0 0
CB SB PB P1 P2 S1 S2
3000 P2 45 3/2 1 1/2 0
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2 7 9 4 7 1 4 1 + =
4 8 17 11 1 8 1 1 9 + =
3 2 19 19 2 2 19 1 + =
We see easily from the table that, job 2, 4, & 3 are delayed.
Number of jobs delayed is 3.
SOL 9.19 Option (D) is correct.
By using the shortest processing time (SPT) rule & make the table
Job Processing time
(in days)
Flow time Due date Tradiness
Start End
3 2 0 2 19 0
1 4 2 2 4 6 + = 6 0
2 7 6 6 7 13 + = 9 4
4 8 13 13 8 21 + = 17 4
So, from the table
Total Tradiness 4 4 8 = + =
SOL 9.20 Option (A) is correct.
Under the conditions of uncertainty, the estimated time for each activity for
PERT network is represented by a probability distribution. This probability
distribution of activity time is based upon three different time estimates made
for each activity. These are as follows.
to = the optimistic time, is the shortest possible time to complete the activity
if
all goes well.
tp = the pessimistic time, is the longest time that an activity could take if
every
thing goes wrong
tl = the most likely time, is the estimate of normal time an activity would
take.
The expected time ( ) te of the activity duration can be approximated as the
arithmetic mean of ( )/ t t 2 o p + and t 2 l . Thus
( ) te 2
( )
t
t t t t t
3
1
2 6
4
l
o p o l p
= +
+
=
+ +
: D
SOL 9.21 Option (D) is correct.
Exponential smoothing method of forecasting takes a fraction of forecast error
into account for the next period forecast.
The exponential smoothed average ut , which is the forecast for the next period
( ) t 1 + is given by.
ut (1 ) .... (1 ) ..... y y y t t
n
t n 1 3 a a a a a = + + +
(1 )[ (1 ) ... (1 ) ...] y y y y ( ) t t t
n
t n 1 2 1 a a a a a a a = + + + + +
( ) u y u t t t 1 1 a = +
u e t t 1 a = +
For EOQ 387 units =
Total cost D C
Q
C
Q
D
C
2
u h o # # # = + +
Where Q 387 units EOQ = =
Total cost 1000 200 40 300 0
2
387
387
10000
# # # = + +
2000000 7740 7752 = + + . Rs 2015492 =
Now supplier offers % 2 discount if the order quantity is 1000 or more.
For Q 1000 units =
Total cost 10000 (200 0.98) 40 300
2
1000
1000
10000
# # # # = + +
1960000 20000 3000 = + + . Rs 1983000 =
Supplier also offers % 4 discount if order quantity is 2000 or more.
For Q 2000 units =
Total cost 10000 (200 0.96) 40 300
2
2000
2000
10000
# # # # = + +
1920000 40000 1500 = + + . Rs 1961500 =
It is clearly see that the total cost is to be minimized, the retailer should accept
% 4 discount.
SOL 9.17 Option (D) is correct.
We have to draw a arrow diagram from the given data.
Here Four possible ways to complete the work.
Path Total duration (days)
(i) P R T V    T 3 5 7 2 17 = + + + =
(ii) Q S T V    T 4 5 7 2 18 = + + + =
(iii) Q S U W    T 4 5 5 10 24 = + + + =
(iv) P R U W    T 3 5 5 10 23 = + + + =
The critical path is the chain of activities with the longest time durations.
So, Critical path Q S U W =
SOL 9.18 Option (C) is correct.
In the Earliest due date (EDD) rule, the jobs will be in sequence according to
their earliest due dates.
Table shown below :
Job Processing time
(in days)
Due date Operation start Operation end
1 4 6 0 0 4 4 + =
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x x 3 2 1 2 + 18 # ...(iii)
x1 0 $
x2 0 $
Plot the graph from the given constraints and find the common area.
Now, we find the point of intersection & E F.
For E, x x 3 2 1 2 + 18 =
(E is the intersection point of equation. (ii) & (iii))
x2 6 =
So, x 3 12 1 + 18 =
x1 2 =
For F, x x 3 2 1 2 + 18 =
x1 4 =
So, x 3 4 2 2 # + 18 =
x2 3 =
Hence,
( , ) E 2 6 or ( , 3) F 4
Now at point ( , ) E 2 6
Z 3 2 2 6 # # = +
18 =
At point ( , ) F 4 3
Z 3 4 2 3 # # = +
18 =
The objective function and the constraint (represent by equation (iii)) are equal.
Hence, the objective function will have the multiple solutions as at point & E F,
the value of objective function ( ) Z x x 3 2 1 2 = + is same.
SOL 9.24 Option (A) is correct.
In shortest processing time rule, we have to arrange the jobs in the increasing
order of their processing time and find total flow time.
So, job sequencing are I  III  V  VI  II  IV
Jobs Processing Time (days) Flow time (days)
I 4 4
III 5 4 5 9 + =
V 6 9 6 15 + =
where ( ) e y u t t t 1 = is called error and is the difference between the least
observation, yt and its forecast a period earlier, ut 1  .
The value of a lies between 0 to 1.
SOL 9.22 Option (C) is correct.
In figure,
ROP Re int order po =
LT Lead Time days 8 = =
TT 365 Total Time days = =
q 2555 stock level units = =
Let the reorder quantity be x
Now from the similar triangles
& ABC BDE D D
TT
q
LT
x
=
&
365
2555
x
8
=
x 8 56 Units
365
2555
# = =
Alternate Method
Given,
Demand in a year D 2555 Units =
Lead time T 8 days =
Now, Number of orders to be placed in a year
N
.
Lead Time
Number of days in a year
= orders
8
365
=
Now, quantity ordered each time or reorder point.
Q
Number of orders
Demand in a years
=
8
365
2555
= 56 Units =
SOL 9.23 Option (D) is correct.
Given objective function
Zmax x x 3 2 1 2 = +
and constraints are
x1 4 # ...(i)
x2 6 # ...(ii)
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and shown by dotted line.
Hence,
The expected duration of the critical path is 18 days.
SOL 9.26 Option (C) is correct.
The critical path is 13567
Variance along this critical path is,
2
s 1 3
2
3 5
2
5 6
2
6 7
2
s s s s = + + +
9
1
9
4
9
1
9
1
= + + +
9
7
=
We know,
Standard deviation ( ) Variance
2
s =
.
9
7
0 88 = =
The most appropriate answer is 0.77.
SOL 9.27 Option (C) is correct.
The most common distribution found in queuing problems is poisson distribution.
This is used in singlechannel queuing problems for random arrivals where the
service time is exponentially distributed.
Probability of n arrivals in time t
P
!
( )
n
T e
n T
: l
=
l
where 0, 1, 2....... n =
So, Probability density function of inter arrival time (time interval between two
consecutive arrivals)
( ) f t e
t
: l =
l
SOL 9.28 Option (A) is correct.
Total inventory cost will be minimum, when the holding cost is minimum. Now,
from the Johnsons algorithm, holding cost will be minimum, when we process
the least time consuming job first. From this next job can be started as soon as
possible.
Now, arrange the jobs in the manner of least processing time.
TSQRP or TQSRP (because job Q and S have same processing time).
SOL 9.29 Option (D) is correct.
In a transportation problem with m origins and n destinations, if a basic feasible
solution has less than m n 1 + allocations (occupied cells), the problem is said
to be a degenerate transportation problem.
So, the basic condition for the solution to be optimal without degeneracy is.
Number of allocations m n 1 = +
SOL 9.30 Option (D) is correct.
Here ( ) F t 1 & ( ) F t 2 = Forecastings
m1 & m2 = Number of weeks
A higher value of m results in better smoothing. Since here m m > 2 1 the weightage
of the latest demand would be more in ( ) F t 2 .
Hence, ( ) F t 2 will attain the value of d2 before ( ) F t 1 .
SOL 9.31 Option (C) is correct.
There are two paths to reach from node to node P G.
VI 8 15 8 23 + =
II 9 23 9 32 + =
IV 10 32 10 42 + =
Now Total flow time T 4 9 15 23 32 42 = + + + + +
125 =
Average flow time
Number of jobs
Total flow time
=
Taverage
6
125
= 20.83 days =
SOL 9.25 Option (D) is correct.
Make the table and calculate the excepted time and variance for each activity
Activity Optimistic
time
(days)
to
Most
likely
time
(days)
tm
Pessimistic
time (days)
tp
Expected
Time
(days)
t
t t t
6
4
e
o m p
=
+ +
Variance
t t
6
p o 2
2
s =
b l
1  2 1 2 3
6
1 8 3
2
+ +
=
6
3 1
9
1
2
=
b l
1  3 5 6 7
6
5 24 7
6
+ +
=
6
7 5
9
1
2
=
b l
1  4 3 5 7
6
3 20 7
5
+ +
=
6
7 3
9
4
2
=
b l
2  5 5 7 9
6
5 28 9
7
+ +
=
6
9 5
9
4
2
=
b l
3  5 2 4 6
6
2 16 6
4
+ +
=
6
6 2
9
4
2
=
b l
5  6 4 5 6
6
4 20 6
5
+ +
=
6
6 4
9
1
2
=
b l
4  7 4 6 8
6
4 24 8
6
+ +
=
6
8 4
9
4
2
=
b l
6  7 2 3 4
3
6
2 12 4 + +
=
6
4 2
9
1
2
=
b l
Now, the paths of the network & their durations are given below in tables.
Paths Expected Time duration (in days)
i Path 13567 T 6 4 5 3 18 = + + + =
ii Path 12567 T 2 7 5 3 17 = + + + =
iii Path 147 T 5 6 11 = + =
Since path 13567 has the longest duration, it is the critical path of the network
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Max Z CX =
Subject to AX B #
And dual of above LP is represented by
Min Z B Y
T
=
Subject to A Y
T
C
T
$
So, the dual is 6 6 Min u v +
Subject to 3 2 u v + 4 $
2 3 u v + 6 $
, u v 0 $
SOL 9.35 Option (B) is correct.
We have to make a table from the given data.
Month Production (Pieces) Demand Excess or short form
(pieces)
In regular
time
In over
time
Regular Total
1 100 20 90 10 10 20 30 + =
2 100 20 130 30  30 20 10 + =
3 80 40 110 30  30 40 10 + =
From the table,
For 1st month there is no need to overtime, because demand is 90 units and
regular time production is 100 units, therefore 10 units are excess in amount.
For 2nd month the demand is 130 unit and production capacity with overtime
is 100 20 120 units + = , therefore 10 units (130 120 ) 10 = are short in amount,
which is fulfilled by 10 units excess of 1st month. So at the end of 2nd month
there is no inventory.
Now for the 3rd month demand is 110 units and regular time production is
80 units. So remaining 110 80 30 units = are produced in overtime to fulfill the
demand for minimum cost of plan.
SOL 9.36 Option (D) is correct.
Total annual cost cos cos Annual holding t Annual ordering t = +
Maximum level of inventory N 100 =
So, Average inventory
N
2
50 = =
Inventory carrying cost Ch . Rs per item per month 10 =
. Rs per item per year 10 12 # =
. Rs per item per year 120 =
So, Annual holding cost
N
C
2
h # =
ChA 50 120 # =
. Rs item per year 6000 =
And, Ordering cost Co per order 100 =
Number of orders in a year
.
order
1 5
12
=
(i) Path PQG (ii) Path PRG
For Path PQG,
Length of the path SG S d Q QG = +
For path PRG,
Length of the path SG S d R RG = +
So, shortest path SG , Min S d S d Q QG R RG = + +
" ,
SOL 9.32 Option (C) is correct.
From the product structure we see that 2 piece of R is required in production of
1 piece P.
So, demand of R is double of P
Week Demand
( ) P
Demand
( ) R
Inventory level
Production Demand I =
1 1000 2000 R 2000 
2 1000 2000 R 2 4000 
3 1000 2000 R 3 6000 
4 1000 2000 R 4 8000 
5 1200 2400 R 5 10400 
6 1200 2400 R 6 12800 
We know that for a production system with bottleneck the inventory level should
be more than zero.
So,
R 6 12800  0 $
For minimum inventory
R 6 12800  0 =
R 6 12800 =
R 2133 =
2200 
Hence, the smallest capacity that will ensure a feasible production plan up to
week 6 is 2200.
SOL 9.33 Option (B) is correct.
The LP has an optimal solution that is not unique, because zero has appeared in
the nonbasic variable (x and y) column, in optimal solution.
SOL 9.34 Option (A) is correct.
The general form of LP is
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4. 40 20 20 0 20 20
5. 20 20 0 0 0 0
Total cost of plan 100 140 20 260 . Rs = + + =
Case (III) The order is placed two times, 65 units at starting and 40 units after
3
rd
week.
Weeks Quantity Cost
Inventory Used Carried
forward
Ordering
Rs.
Carrying
Rs.
Total
Rs.
1. 65
(ordered)
50 15 100 15 115
2. 15 0 15 0 15 15
3. 15 15 0 0 0 0
4. 40
(ordered)
20 20 100 20 120
5. 20 20 0 0 0 0
Total cost of plan 115 15 120 250 . Rs = + + =
Case (IV) Now again order is placed two times, 85 units at starting and 20 units
after 4
th
week.
Weeks Quantity Cost
Inventory Used Carried forward Order Carrying Total
1. 85
(ordered)
50 35 100 35 135
2. 35 0 35 0 35 35
3. 35 15 20 0 20 20
4. 20 20 0 0 0 0
5. 20
(ordered)
20 0 100 0 100
Total cost of plan 135 35 20 100 290 . Rs = + + + =
So, The cost of plan is least in case (III) & it is 250 . Rs
SOL 9.39 Option (B) is correct.
Given : l 8 per hour =
6 minper customer =
/ customer hours
6
60
= 10 / customer hour =
We know, for exponentially distributed service time.
Average number of customers in the queue.
Lq
( )
#
( ) 10
8
10 8
8
# =
. 3 2 =
SOL 9.40 Option (C) is correct.
MRP (Material Requirement Planning) :
MRP function is a computational technique with the help of which the master
schedule for end products is converted into a detailed schedule for raw materials
8 order =
So, Annual ordering cost CoA . cos ordering t per order no of orders # =
100 8 # =
. Rs per order 800 =
Hence,
Total Annual cost 6000 800 = +
.6800 Rs =
SOL 9.37 Option (B) is correct.
Given :
Number of items produced per moth
K 100 per month 0 =
Number of items required per month
R 50 per month 0 =
Lot size q0 1000 =
When backlog is not allowed, the maximum inventory level is given by,
Im
K
K R
qo # =
1000
1000 500
1000 # =
500 =
SOL 9.38 Option (B) is correct.
Given :
Ch = Rs. 1 per item per week
Co = Rs. 100 per order
Requirements = 50  0  15  20  20
Total cost is the cost of carrying inventory and cost of placing order.
Case (I) Only one order of 105 units is placed at starting.
Weeks Quantity Cost
Inventory Used Carried forward Order Carrying Total
1. 105 (ordered) 50 55 100 55 155
2. 55 0 55 0 55 55
3. 55 15 40 0 40 40
4. 40 20 20 0 20 20
5. 20 20 0 0 0 0
Total cost of plan 155 55 40 20 = + + + 270 Rs = .
Case (II) Now order is placed two times, 50 units at starting and 55 units after
2
nd
week.
Weeks Quantity Cost
Inventory Used Carried forward Ordering
Rs.
Carrying
Rs.
Total
Rs.
1. 50
(ordered)
50 0 100 0 100
2. 0 0 0 0 0 0
3. 55
(ordered)
15 40 100 40 140
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We can see from the table that all the operations (on machine 1st and machine
2nd) complete in 115 hours. So the optimal makespan of the shop is 115 hours.
SOL 9.42 Option (C) is correct.
Given : D 2500 = units per year
Co = Rs. 100 per order
Ch % 25 = of unit price
Case (I) : When order quantity is less than 500 units.
Then, Unit price 10 . Rs =
and Ch % 25 = of 10 2.5 . Rs =
EOQ
. C
C D 2
2 5
2 100 2500
h
0 # #
= =
Q 447.21 447 units  =
Total cost cos unit t D
Q
c
Q
D
c
2
h o # # # = + +
. 2500 10
2
447
2 5
447
2500
100 # # # = + +
. . 25000 558 75 559 75 = + + 26118 . Rs =
Case (II) : when order Quantity is 500 units. Then unit prize 9 . Rs =
and ch 25% 9 2.25 . of Rs = =
Q 500 units =
Total cost . 2500 9
2
500
2 25
500
2500
100 # # # = + +
22500 562.5 500 = + + 23562.5 . Rs =
So, we may conclude from both cases that the optimum order quantity must be
equal to 500 units.
SOL 9.43 Option (C) is correct.
Given, In figure
Step (I) : Reduce the matrix :
In the effectiveness matrix, subtract the minimum element of each row from all
the element of that row. The resulting matrix will have at least one zero element
in each row.
Step (II) : Mark the column that do not have zero element. Now substract the
minimum element of each such column for all the elements of that column.
and components used in the end product.
Input to MRP
(i) Master production schedule.
(ii) The bill of material
(iii) Inventory records relating to raw materials.
SOL 9.41 Option (B) is correct.
First finding the sequence of jobs, which are entering in the machine. The solution
procedure is described below :
By examining the rows, the smallest machining time of 6 hours on machine M2.
Then scheduled Job P last for machine M2
After entering this value, the next smallest time of 7 hours for job U on machine
M2. Thus we schedule job U second last for machine M2 as shown below
After entering this value, the next smallest time of 8 hours for job R on machine
M1. Thus we schedule job R first as shown below.
After entering this value the next smallest time of 11 hours for job T on machine
M1. Thus we schedule job T after the job R.
After this the next smallest time of 19 hours for job Q on machine M2. Thus
schedule job Q left to the U and remaining job in the blank block.
Now the optimal sequence as :
Then calculating the elapsed time corresponding to the optimal sequence, using
the individual processing time given in the problem.
The detailed are shown in table.
Jobs
M1 M2
In Out In Out
R 0 8 8 8 13 21 + =
T 8 8 11 19 + = 21 21 14 35 + =
S 19 19 27 46 + = 46 46 20 66 + =
Q 46 46 32 78 + = 78 78 19 97 + =
U 78 78 16 94 + = 97 97 7 104 + =
P 94 94 15 109 + = 109 109 6 115 + =
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Cases Units in
stock
Unit sold
(Demand)
Profit Probability Total
profit
Option
(D)
2 2 2 20 40 # = 0.1 4
Option
(C)
3 2 2 20 1 20 20 # # = 0.1 2
3 3 3 20 60 # = 0.35 21
23
Option
(B)
4 2 2 20 2 20 0 # # = 0 0
4 3 3 20 1 20 40 # # = 0.35 14
4 4 4 20 80 # = 0.35 28
42
Option
(A)
5 2 2 20 3 20 20 # # = 0.10 2 
5 3 3 20 2 20 20 # # = 0.35 7
5 4 4 20 1 20 60 # # = 0.35 21
5 5 5 20 100 # = 0.20 20
46
Thus, For stock level of 5 units, profit is maximum.
SOL 9.45 Option (C) is correct.
Total time used 7 9 7 10 9 6 = + + + + +
min 48 =
Number of work stations 6 =
Maximum time per work station (cycle time) 10 min =
We know,
Line efficiency L h
Number of work stations cycle time
Total time used
#
=
L h .
6 10
48
0 8
#
= = % 80 =
SOL 9.46 Option (D) is correct.
We have to make a network diagram from the given data.
For simple projects, the critical path can be determined quite quickly by
enumerating all paths and evaluating the time required to complete each.
There are three paths between and a f . The total time along each path is
(i) For path abd f
Step (III) : Check whether an optimal assignment can be made in the reduced
matrix or not.
For this, Examine rows successively until a row with exactly one unmarked zero
is obtained. Making square ( ) 4 around it, cross ( ) # all other zeros in the same
column as they will not be considered for making any more assignment in that
column. Proceed in this way until all rows have been examined.
In this there is not one assignment in each row and in each column.
Step (IV) : Find the minimum number of lines crossing all zeros. This consists of
following substep
(A) Right marked ( ) the rows that do not have assignment.
(B) Right marked ( ) the column that have zeros in marked column (not al
ready marked).
(C) Draw straight lines through all unmarked rows and marked columns.
Step (V) : Now take smallest element & add, where two lines intersect.
No change, where single line & subtract this where no lines in the block.
So, minimum cost is 120 140 125 = + + 385 =
SOL 9.44 Option (A) is correct.
Profit per unit sold 90 70 20 . Rs = =
Loss per unit unsold item 70 50 20 . Rs = =
Now consider all the options :
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So,
...... P P P P P 0 0
2
0
3
0
10
0 r r r r + + + + 1 = , and so on P P P P 1 0 2
2
0 r r = =
( ........) P 1 1 1 0 + + + 1 =
P 11 0 # 1 =
P0
11
1
=
Hence, the probability that a person who comes in leaves without joining the
queue is,
P11 P
11
0 : r =
P1 1
11
1 11
# =
11
1
=
SOL 9.51 Option (B) is correct.
For economic point of view, we should calculate the total cost for all the four
processes.
Total cost cos cos Fixed t Variable t Number of piece # = +
For process (I) :
Fixed cost 20 . Rs =
Variable cost 3 . Rs per piece =
Number of pieces 100 =
Total cost 0 3 100 2 # = + 320 . Rs =
For process (II) :
Total cost 50 1 100 # = + 150 . Rs =
For process (III) :
Total cost 40 2 100 # = + 240 . Rs =
For process (IV) :
Total cost 10 4 100 # = + 410 . Rs =
Now, we can see that total cost is minimum for process (II). So process (II)
should choose for economic point of view.
SOL 9.52 Option (A) is correct.
Given : Rating factor % 120 =
Actual time Tactual min 8 =
Normal time Tnormal actual time Rating factor # =
Tnormal 8
100
120
# = . min 9 6 =
10% allowance is allowed for this operation.
So, standard time,
T tan s dard
T
1
100
10
normal
=
.
.
0 9
9 6
= 10.67min =
Hence, standard production rate of the weld joint
. 10 67
8 60 #
= 45 units =
SOL 9.53 Option (D) is correct.
The expected value of the lead time demand
. . . . 80 0 20 100 0 25 120 0 30 140 0 25 # # # # = + + +
Tabdf 30 40 25 20 115 days = + + + =
(ii) For path ace f
Tacef 30 60 45 20 155 days = + + + =
(iii) For path abe f
Tabef 30 40 45 20 135 days = + + + =
Now, path ace f be the critical path time or maximum excepted completion
time 155 days T =
SOL 9.47 Option (A) is correct.
The critical path of the network is ace f .
Now, for variance.
Task Variance (days
2
)
a 25
c 81
e 36
f 9
Total variance for the critical path
Vcritical 25 81 36 9 = + + +
151 days
2
=
We know the standard deviation of critical path is
s Vcritical = days 151 =
SOL 9.48 Option (D) is correct.
In operation process chart an assembly activity is represented by the symbol O
SOL 9.49 Option (C) is correct.
Gives :
Sales of product during four years were 860, 880, 870 and 890 units.
Forecast for the fourth year u4 876 =
Forecast for the fifth year, using simple exponential smoothing, is equal to the
forecast using a three period moving average.
So, u5 ( )
3
1
880 870 890 = + +
u5 880 unit =
By the exponential smoothing method.
u5 ( ) u x u 4 4 4 a = +
880 ( ) 876 890 876 a = +
4 ( ) 14 a =
a
14
4
7
2
= =
SOL 9.50 Option (A) is correct.
Given : 4/hour l = , 4/hour =
The sum of probability Pn
n
n
0
10
=
=
/ 1 = n 10 =
..... P P P P 0 1 2 10 + + + 1 =
In the term of traffic intensity r
= & 1
4
4
r = =
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(iv) ( / , / ) C 4 3 4 3 / / / Z 4 3 4 3 8 3 = + =
The optimal solution occurs at point ( / , / ) C 4 3 4 3
SOL 9.57 Option (D) is correct.
We know,
The inequality constraints are changed to equality constraints by adding or
subtracting a nonnegative variable from the lefthand sides of such constraints.
These variable is called slack variables or simply slacks.
They are added if the constraints are ( ) # and subtracted if the constraints are
( ). $ These variables can remain positive throughout the process of solution and
their values in the optimal solution given useful information about the problem.
Hence, Optimum dual variables are and v v 1 2.
SOL 9.58 Option (B) is correct.
PERT (Programme Evaluation and Review Technique) uses even oriented network
in which successive events are joined by arrows.
Float is the difference between the maximum time available to perform the activity
and the activity duration. In PERT analysis a critical activity has zero float.
SOL 9.59 Option (C) is correct.
Given :
Forecast sales for December ut 25 =
Actual sales for December Xt 20 =
Exponential smoothing constanta . 0 2 =
We know that, Forecast sales for January is given by
ut 1 + [ ] u X u t t t a = +
. ( ) 25 0 2 20 25 = +
. ( ) 25 0 2 5 # = + 25 1 = 24 =
Hence, Forecast sales for January 2003 would be 24.
SOL 9.60 Option (C) is correct.
For product P : 100 units D = , 50 ./ Rs order Co = , 4 ./ / Rs unit year Ch =
Economic order quantity (EOQ) for product P,
( ) EOQ P
C
C D 2
h
o
=
( ) EOQ P
4
2 50 100 # #
= 2500 50 = = ...(i)
For product Q :
400 Units D = 50 . Rs order Co = , 1 . / Rs Unit year Ch =
EOQ For Product Q,
( ) EOQ Q
C
C D 2
h
o
=
1
2 50 400 # #
= 40000 200 = = ...(ii)
From equation (i) & (ii),
( )
( )
EOQ
EOQ
Q
P
200
50
4
1
= =
( ) : ( ) EOQ EOQ P Q : 1 4 =
SOL 9.61 Option (D) is correct.
112 =
Reorder level is 1.25 time the lead time demand.
So, reorder value . 1 25 112 # = 140 =
Here both the maximum demand or the reorder value are equal.
Hence, service level % 100 =
SOL 9.54 Option (C) is correct.
The 3 activity need to be crashed to reduce the project duration by 1 day.
SOL 9.55 Option (C) is correct.
First we have to make a transportation model from the given details.
We know,
Basic condition for transportation model is balanced, if it contains no more than
m n 1 + nonnegative allocations, where m is the number of rows and n is the
number of columns of the transportation problem.
So, Number of supply point (allocations) m n 1 = +
2 2 1 3 = + =
Number of demand points 4 ( . ) No of blank blocks =
Total supply or demand 50 40 90 = + =
SOL 9.56 Option (B) is correct.
Given : Objective function Z X X 1 2 = +
From the given corners we have to make a graph for and X X 1 2
From the graph, the constraint X X 5 1 2 # + has no effect on optimal region.
Now, checking for optimal solution
Point Z X X 1 2 = +
(i) ( , ) O 0 0 Z 0 =
(ii) (2, 0) A Z 2 0 2 = + =
(iii) ( , ) B 0 2 Z 0 2 2 = + =
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Now, Time taken to produce one unit is,
T 60
80
8
# = min 6 =
Activity Standard time (min) No. of work stations
( . / ) S T T
M. Mechanical assembly 12 12/6 2 =
E. Electric wiring 16 16/6 2.666 3 = =
T. Test 3 3/6 0.5 1 = =
Number of work stations are the whole numbers, not the fractions.
So, number of work stations required for the activities , and M E T would be 2, 3
and 1, respectively.
SOL 9.64 Option (A) is correct.
Given :
Mean arrival rate l 3 per day =
Mean service rate 6 per day =
We know that, for first come first serve queue.
Mean waiting time of an arrival,
t
( )
( ) 6 6 3
3
=
day
6
1
=
SOL 9.65 Option (C) is correct.
Given : 1000 units D = , 100/order Co = , 100 / unit year Ch =
400 . Rs Cs =
We know that, optimum level of stock out will be,
. S O
C
DC
C C
C 2
h
o
h s
s
# =
+
. S O
100
2 1000 100
100 400
400
#
# #
=
+
44.72 0.895 # = 40 =
SOL 9.66 Option (A) is correct.
Solve this problem, by the linear programming model.
We have to make the constraints from the given conditions.
For production conditions
P Q 2 + 2000 # ...(i)
For raw material
P Q + 1500 # ...(ii)
For electric switch
Q 600 # ...(iii)
For maximization of profit, objective function
Z P Q 3 5 = + ...(iv)
From the equations (i), (ii) & (iii), draw a graph for toy and P Q
Let, The standard machine tool produce x1 number of components.
For standard machine tool,
cos Total t . cos cos Fixed t Variable t Number of components # = +
( ) TC SMT x
60
30
60
22
200 1 # # = +
: D
x
60
30
200
60
22
200 1 # # # = + x 100
3
220
1 = + ...(i)
If automatic machine tool produce x2 Number of components, then the total cost
for automatic machine tool is
( ) TC AMT 2 x
60
5
800 2 = +
b l
x 1600
3
200
2 = + ....(ii)
Let, at the breakeven production batch size is x and at breakeven point.
( ) TC SMT TC
AMT
=
^ h
x
100
3
220
+ 1600
00x
3
2
= +
x x
3
220
3
200
 1600 100 =
x
3
20
1500 =
x
20
1500 3 #
= 225 =
So, breakeven production batch size is 225.
SOL 9.62 Option (D) is correct.
Given :
Total time T 16 hours = 16 60 # = min 960 =
Actual working time was 90% of total time
So, , Actual time Tactual 90% 960 of =
100
90
960 # = , 864 min Tactual =
Performance rating was 120 percent.
So, Normal time, Tnormal 120%of 864 =
100
120
864 # = . min 1036 8 =
Allowance is 20% of the total available time.
So total standard time T tan s dard
T
1
100
20
normal
=
b l
.
.
.
.
1 0 2
1036 8
0 8
1036 8
=
=
min 1296 =
Number of joints soldered, N 108 =
Hence,
Standard time for operation
108
1296
= min 12 =
SOL 9.63 Option (A) is correct.
Given :
Number of units produced in a day 80 units =
Working hours in a day 8 hours =
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Let, n number of units are produced per machine, when both the machines are
to be used concurrently.
We know that,
Total cost cos cos Fixed t Variable t Number of units # = +
For M1, Total cost of production n 100 2 # = +
For M2, Total cost of production n 200 = +
Hence,
Total cost of production on machine & M M 1 2 is
n n 100 2 200 = + + + n 300 3 = +
We know, Breakeven point is the point, where total cost of production is equal to
the total sales price.
Assuming that Number of units produced are less than 800 units and selling price
is Rs. 3.50 per unit.
So at breakeven point,
n 300 3 + . ( ) n n 3 50 = +
n 300 3 + . n 3 50 2 # =
300 n 4 =
n
4
300
= 75 units =
SOL 9.69 Option (C) is correct.
Warden checks the student 11 occasions a day during the study hours over a
period of 10 days.
So, Total number of observations in 10 days.
11 10 110 observations # = =
Study hours as 8.00 pm to 10.30 pm.
So, total study hours in 10 days
. 2 5 10 # = 25 . hours =
Number of occasions when student studying 71 =
So, Probability of studying
P
.
Total observations
No of observations when student studying
= .
110
71
0 645 = =
Hence,
Minimum hours of his study during 10 day period is
T Total study hours in days P 10 # = . 0 645 25 # = 16.1 hours =
SOL 9.70 Option (B) is correct.
We know, from the exponential and smoothing average method, the exponential
smoothed average u( ) t 1 + which is the forecast for the next period ( ) t 1 + is given
by
u( ) t 1 + (1 ) ....... (1 ) ....... u u u t t
n
t n 1 3 a a a a a = + + +
Now, for sales of the fifth month put t 4 = in the above equation,
So, u5 ( ) ( ) ( ) u u u u 1 1 1 4 3
2
2
3
1 a a a a a a a = + + +
where , , 70, 68, 82, 95 and are and respectively u u u u 1 2 3 4 and . 0 4 a =
Hence u5 0.4 95 0.4(1 0.4)82 0.4(1 0.4) 68
2
# # = + +
0.4(1 0.4) 70
3
# +
u5 . . . 38 19 68 9 792 6 048 = + + + . 73 52 =
Line (i) and line (ii) intersects at point A, we have to calculate the intersection
point.
P Q 2 + 2000 =
P Q + 1500 =
After solving there equations, we get ( , ) A 1000 500
For point B,
P Q 2 + 2000 =
Q 600 =
P 2000 1200 800 = =
So, ( , ) B 800 600
Here shaded area shows the area bounded by the three line equations (common
area)
This shaded area have five vertices.
Vertices Profit Z P Q 3 5 = +
(i) 0(0, 0) Z 0 =
(ii) (10 0, 500) A 0 Z 3000 2500 5500 = + =
(iii) ( , ) B 800 600 Z 2400 3000 5400 = + =
(iv) ( , ) C 0 600 Z 3000 =
(v) ( , ) D 1500 0 Z 4500 =
So, for maximization of profit
P 1000 = from point(ii)
Q 500 =
SOL 9.67 Option (A) is correct.
The symbol used for transport in work study is given by, &
SOL 9.68 Option (A) is correct.
Given : For machine M1 :
Fixed cost 100 = Rs.
Variable cost 2 = Rs. per piece
For machine M2 :
Fixed cost 200 . Rs =
Variable cost 1 . Rs per piece =
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SOL 9.73 Option (C) is correct.
The various path and their duration are :
Path Duration (days)
ADL 2 10 3 15 + + =
AEGL 2 5 6 3 16 + + + =
AEH 2 5 10 17 + + =
BH 8 10 18 + =
CFKM 4 9 3 8 24 + + + =
CFH 4 9 10 23 + + =
AEKM 2 5 3 8 18 + + + =
BGL 8 6 3 17 + + =
BKM 8 3 8 19 + + =
CFGL 4 9 6 3 22 + + + =
Here maximum time along the path CFKM. So, it is a critical path and
project can be completed in 24 days.
SOL 9.74 Option (A) is correct.
The principal of motion economy are used while conduction a method study on
an operation.
Method study consist of the sequence of operation, which are performing on a
machine. From the sequencing, the idle time of the machine reduced to a certain
amount and the operation becomes faster and smooth. Also the productivity of
the plant increases by the principle of motion economy.
SOL 9.75 Option (B) is correct.
Standard Time Normal time Allowance = +
SOL 9.76 Option (B) is correct.
Percentage Error E % 20 = or 0.20
Standard deviation S
( )
n
E E 1 #
=
where n = No. of observation
S
. ( . )
100
0 20 1 0 20
=
. 0 04 =
For % 95 confidence level, 2 ! s =
So, upper control limit UCL E S # s = +
. . . 0 20 2 0 04 0 28 # = + =
Lower control Limit LCL E S # s =
. . . 0 20 2 0 04 0 12 # = =
Hence % 95 confidence interval of this estimate is (0.12, 0.28)
SOL 9.77 Option (D) is correct.
Given : Co 200 Rs =
D 4000 units = per annum
Ch % 10 = of 100 10 Rs = per annum
The Economic order quantity is,
SOL 9.71 Option (C) is correct.
Given :
D 800000 = per annum
Co 1200 . Rs =
Ch 120 = per piece per annum
We know that,
Economic order quantity (EOQ) N
C
C D 2
h
o
= =
N
120
2 1200 800000 # #
= 16 10
6
# =
4 10 4000
3
# = =
SOL 9.72 Option (A) is correct.
Given : Objective function, Z x x 2 5 1 2 = +
and x x 3 1 2 + 40 #
x x 3 1 2 + 24 #
x x 1 2 + 10 #
x1 0 >
x2 0 >
First we have to make a graph from the given constraints. For draw the graph,
substitute alternatively & x x 1 2 equal to zero in each constraints to find the point
on the & x x 1 2 axis.
Now shaded area shows the common area. Note that the constraint x x 3 40 1 2 # +
does not affect the solution space and it is the redundant constraint. Finding the
coordinates of point G by the equations.
x x 3 1 2 + 24 =
x x 1 2 + 10 =
Subtract these equations,
(3 ) 0 x x 1 1 + 24 10 =
x 2 1 14 = & 7 x1 =
x2 x 10 1 = 10 7 = 3 =
So, point ( , ) G 7 3
So, maximum profit which can meet the constraints at ( , ) G 7 3 is
Zmax 2 7 5 3 # # = + 14 15 = + 29 =
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Given : Mean cycle time min 10 =
The workers performing at % 90 efficiency.
So, Normal time min 10
100
90
9 # = =
Allowance % 10 =
Standard time = Normal time + Allowance
9 9
100
10
# = + . . min 9 0 9 9 9 = + =
EOQ
C
C D 2
h
o
= 400 unit
10
2 200 4000 # #
= =
SOL 9.78 Option (C) is correct.
Given :
Average time between arrivals min 10 =
Mean arrival rate (Number of arrivals per unit time) 6 per hour l =
Average time between call min 3 =
Mean service rate 20 per hour
3
60
= =
So, the probability that an arrival does not have to wait before service is,
PO 1
= . . 1
20
6
1 0 3 0 7 = = =
SOL 9.79 Option (B) is correct.
Total supply 50 40 60 150 units = + + =
Total demand 20 30 10 50 110 units = + + + =
In this question, the total availability (supply) may not be equal to the total
demand, i.e.,
ai
i
m
1 =
/ bj
j
n
1
!
=
/
Such problems are called unbalanced transportation problems.
Here total availability is more than the demand. So we add a dummy destination
to take up the excess capacity and the costs of shipping to this destination are
set equal to zero.
So, a dummy destination of capacity 40 unit is needed.
SOL 9.80 Option (B) is correct.
In PERT analysis, a Beta distribution is assumed because it is unimodal, has non
negative end points, and is approximately symmetric.
Here three parallel paths are given. But the critical path is one with the longest
time durations.
Two paths have same time duration of 12.
So, mean 12 =
The PERT analysis has a beta ( ) b distribution and Standard deviation
variance = 4 2 = = .
SOL 9.81 Option (D) is correct.
Production flow analysis (PFA) is a comprehensive method for material analysis,
Part family formation, design of manufacturing cells and facility layout design.
These informations are taken from the route sheet.
SOL 9.82 Option (D) is correct.
The simple moving average method can be used if the underlying demand pattern
is stationary. This method include new demand data in the average after discarding
some of the earlier demand data.
Let mt = moving average at time t
yt = demand in time t and
n = moving average period
mt 1 +
n
y y t t n 1 1
=
+ +
SOL 9.83 Option (D) is correct.